Africa Finance Corporation (AFC) Invests $10 Million in Dhamana Guarantee Company to Strengthen Local Currency Infrastructure Financing in East Africa
Africa Finance Corporation (AFC), a prominent infrastructure solutions provider in Africa, has announced a significant equity investment in Dhamana Guarantee Company Limited. This credit enhancement facility aims to facilitate long-term, local-currency financing for infrastructure projects throughout East Africa. The investment is part of AFC’s broader commitment of up to $20 million, with an initial allocation of $10 million directed towards Dhamana’s core capital.
Investment Overview and Objectives
Dhamana is structured to provide guarantees that enable infrastructure developers to access domestic debt capital markets, particularly from pension funds and institutional investors, on more favorable terms. This initiative is designed to enhance financial inclusion by supporting financial institutions in the region. Dhamana’s operational model is informed by successful frameworks established by similar credit enhancement facilities in West Africa, such as InfraCredit Nigeria, where AFC holds a founding shareholder position.
Strategic Importance of Dhamana
Banji Fehintola, Executive Board Member and Head of Financial Services at AFC, emphasized the strategic significance of this investment. He noted that Dhamana represents an opportunity to strengthen domestic capital markets in East Africa by connecting long-term institutional savings with viable infrastructure investments. He expressed AFC’s commitment to fostering another credit enhancement facility in East Africa, which will facilitate local-currency financing, bolster investor confidence, and expedite infrastructure development in the region.
Leadership Insights from Dhamana
Christopher Olobo, Chief Executive Officer of Dhamana Guarantee Company, welcomed AFC as a shareholder, highlighting the investment as a crucial endorsement of Dhamana’s mission to unlock long-term, local currency financing for infrastructure and priority sectors in East Africa. He acknowledged that AFC’s extensive experience with credit enhancement platforms like InfraCredit Nigeria will enhance Dhamana’s capital base, governance, and strategic capabilities as it expands its guarantee operations. Olobo expressed eagerness to collaborate with AFC in mobilizing domestic institutional capital and deepening local debt markets, aiming to deliver transactions that balance strong risk management with measurable developmental impact.
Collaborative Governance and Future Prospects
Dhamana is supported by a robust consortium of development partners and institutional investors, with AFC expected to play an active role in governance and strategic oversight. The company’s project pipeline encompasses various infrastructure sectors across East Africa, focusing on transactions that yield significant developmental impact while adhering to rigorous risk management and governance standards.
This investment aligns with AFC’s overarching strategy to bolster credit enhancement facilities across Africa, recognizing their vital role in mobilizing domestic capital, enhancing local debt markets, and improving the financial sustainability of infrastructure projects.
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About Africa Finance Corporation
Established in 2007, Africa Finance Corporation serves as a catalyst for private sector-led infrastructure investment across Africa. AFC combines specialized industry expertise with a focus on financial and technical advisory, project structuring, project development, and risk capital to address the continent’s infrastructure needs and promote sustainable economic growth.
Over the past 18 years, AFC has built a reputation as a preferred partner for investing in and delivering high-quality infrastructure assets that provide essential services in key sectors such as energy, natural resources, heavy industry, transport, and telecommunications. With 48 member countries, AFC has invested over $19 billion in 36 African nations since its inception.
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Published on 2026-04-15 20:09:00 • By the Editorial Desk
